By Foo Yun Chee

BRUSSELS (Reuters), – The impact of sanctions imposed against Russia and soaring fuel costs on companies is less severe than the state aid received by businesses affected by the COVID-19 pandemic.

Vestager relaxed state aid regulations last week, allowing companies to receive up to 400,000 euro ($438,520), in state support. Also compensation for up to 30% energy costs. This was after thousands of firms from automakers to airlines reported disruptions to supply chains.

In an interview with Reuters, she stated that there is a significant difference in the situation now caused by Russia’s invasion of Ukraine sanctions and when the pandemic hit more businesses by national lockdowns. This would reduce the aid available.

Vestager replied, “It’s still early days but I wouldn’t believe so,” when Vestager was asked if the European Union would continue to pump trillions into companies that have been hit by sanctions.

“Because it doesn’t have some sort of blanket state intervention into how the market operates, you know having the states come in, the government coming in and basically just telling people to hibernate,” she stated.

Vestager, under two-year relaxed regulations, has approved more than three trillion euros (or $3.29 trillion) to aid pandemic victims companies.

She reiterated the fact that they will not be extended.

She said, “The major part of the pandemic temporary frame is (for), that to end by Mid-year.”

($1 = 0.9122 euros)

($1 = 0.9122 euros)